Business Formations in Missouri 2013

2014·0.75 MB·English

by  Missouri Department of Economic Development, Missouri Economic Research and Information Center

2013 Business Formations in Missouri
New businesses bring industry diversity and job growth to a
state and are major engines for economic growth. Research
has shown a positive relationship between levels of
entrepreneurial activity and economic growth across
counties.

17,109 Business Formations

Missouri had 17,109 new business formations in 2013, an
increase of 7.1 percent from the 2012 total of 15,969 and
Top Ten Business Formations
an increase of 11.6 percent from the 2011 total of 15,328.
Social Assistance/Private Household
Formations occurred in every Missouri county but were led
employers accounted for 34 percent of all
by the metropolitan population centers of St. Louis, Kansas
formations and include services such as
City and Springfield. Over 55 percent of Missouri counties
in-home caretaking and cooking.
had an increase of new business formations over the
Professional, Scientific & Technical Services,
previous year’s total. Six counties more than doubled the
which include engineering and scientific
number of single year start-ups from 2012 to 2013 which
services, legal and accounting firms, and
include: Audrain, Dallas, Ozark, St. Clair, Saline, and
information technology services, accounted
Scotland.
for 12 percent of all the formations. Below
is a list of the top ten industries for new
2013 New Businesses by County
business formations:

1. Social Assistance/Private Households
2. Professional, Scientific, and Technical
Services
3. Administrative and Support Services
4. Wholesale Electronic Markets, Brokers
and Agents
5. Food Services and Drinking Places
6. Specialty Trade Contractors
7. Construction of Buildings
8. Ambulatory Health Care Services
9. Real Estate
10. Repair and Maintenance
Department of Economic Development
New Business by Industry
The chart below shows, by count, the top ten industries for new business formations in Missouri. The top three industries
have all seen at least two straight years of growth. Construction of Buildings was the only industry to see growth in
2013 after a previous declining trend. Administrative and Support Services had a four year growth trend. Professional,
Scientific, and Technical Services and Real Estate had three year growth trends. Ambulatory Health Care Services and
Wholesale Electronic Markets and Agents and Brokers had two year growth trends. Private Households/Social Assistance
includes the subcategory of Home Healthcare Services, which makes up 80% of the combined industry sector, has a
two year growth trend.
Top Ten New Business Formations by Industry Sector
Private Households/Social Assistance
Professional, Scientific & Technical Services
Administrative and Support Services
Wholesale Electronic Markets & Agents/Brokers
2013
Food Services & Drinking Places
2012
Specialty Trade Contractors
Construction of Buildings
Ambulatory Health Care
Real Estate
Repair and Maintenance
5 0 0 1,0 0 0 1,5 0 0 2,0 0 0 2,5 0 0 3,0 0 0 3,5 0 0 4,0 0 0 4,5 0 0 5,0 0 0
Regional Distinctions
Health Care, Private Households, Professional, Scientific and Technical Services, Construction, and Food Service and
Drinking Places were the top categories for new formations across state economic regions. Some industry distinctions,
however can be drawn between the regions.

Health Care accounted for a disproportionate share (57.2%) of new business formations in the West Central region
compared to all other regions. The Upper South Central region had a larger share (3.8%) of Manufacturing start-ups
compared to a range of 0.7 – 2.9 percent for all other regions. Likewise, 6.6 percent of all new businesses in the
Lower South Central region were in Transportation and Warehousing compared to a range of 2.2 – 5.4 percent for all
other regions. The North Central region had nearly triple the percent of 2012 new businesses started in Agriculture
(5.9%) than most other regions who ranged 0.2 to 2.8 percent. North Central (11.8%) and Central (11.6%) regions
had the largest share of Construction start-ups compared to the a range of 4.0 – 11.4 percent in all other regions.
Greater St. Louis, which saw 40.4 percent of all 2013 new business formations in Missouri, had larger shares of
Professional, Scientific and Technical Services, Health Care, and Finance and Insurance business formations.
Formation Rates Show High Activity in
Southeast Missouri

Total business formation tends to be highest in urban areas
that have high population density. The map below shows
new business starts per 1,000 people for each county in
Missouri. This map shows business growth as standardized
by population, making it possible to identify rural counties
with high business growth.

The Missouri Economic Research and
The statewide average new business formation rate of 2.8
Information Center (MERIC) monitors new
increased 0.1 percent during 2013, and continues a trend of
business formations through unemployment
annual growth. The counties of Southeast Missouri continue to
insurance accounts established in the state.
show a higher business formation rate than the rest of the
This allows MERIC to gauge the number of
state. 11 counties increased their 2013 business formation
new, non-farm businesses by industry and
rate by one or more percent over their 2012 rate. The 11
county detail.
counties include: Benton (4.3), Scotland (2.7), St. Clair (2.1),
Reynolds (7.3), St. Louis City (4.5), Carter (2.6), Vernon Business data is derived from the Quarterly
(2.6), Saline (2.2), Barton (2.3), Ozark (1.8), and Henry Census of Employment and Wages, a
(2.8). cooperative program between the Bureau of
Labor Statistics and state labor market
New Businesses Per 1,000 in Population
information centers, that monitors employing
businesses.
Non-employer businesses, such as sole
proprietors, are monitored through a U.S.
Census program that uses administrative data,
chiefly IRS returns, to develop statistics.
Non-employer businesses account for less
than 4 percent of all sales but do account for
the largest number of businesses. More
information is available at:
www.census.gov/econ/nonemployer/